Apr. 20, 2022
Hello, I recently heard of the proposed rule SR-NSCC-2022-003. The current market is opaque in regards to transparency and accountability for large institutions. SR-NSCC-2022-003 is very concerning to me as a retail investor. The rule would hamper true market price discovery. It would also support naked shorting, by removing the infinet risk associated with it. It removes the deterrent to what is a harmful and dangerous practice. This proposal creates a dangerously unfair advantage for market makers who excessively naked short securities, and creates an infinite downside to those on the other end of their shorting. How does this rule help in keeping the markets fair? It doesn't. A system is in place to deal with FTDs, and is a fair solution. The proposed rule only favours reckless institutions. Retail investors' opinions should be considered in present, and future regulations as we participate in the market too, and are consistently harmed by rules that support only large institutions. The rule is an endorsement of criminal activities under a guise of fairness, Similar policies have been proposed twice before, and have been revoked. Large financial institutions are afraid they may no longer be able to take unfair and risky bets and not face consequences for their actions. It is disturbing that market makers, and large financial institutions continue to propose unfair and exploitative methods, hoping that they meet no opposition. Blatant exploitation of investors leads me to believe they feel like they are above the law, and consequences. I ask that you deny the SR-NSCC-2022-003 proposal. I ask that you take threats to the fairness, and transparency of the markets seriously as proposals like this are a threat to every retail investor in the market. Please do your part and stop this. Signed, Shayne Chambers